
Securing competitive home loan interest rates is an essential step for anyone buying a property. But considering over 100 different lenders in Australia are offering almost 4,000 different mortgage products, how are you supposed to find the best home loan interest rates?
The key is to find interest rates from a wide range of lenders and then compare them. If this sounds like an awful lot of work, then don’t worry – that’s what mortgage brokers are for! But first things first. What should you know about home loan interest rates in Australia? Why is an accurate comparison so important? And how can a mortgage broker save you time and money when it comes to interest rates?
Understanding Home Loan Interest Rates Australia
Interest rates are the cost of borrowing money from a lender, expressed as a percentage of the total loan. They determine how much interest you’ll be required to pay the lender over the life of the loan. The higher your interest rates, the higher your monthly repayments will be.
The most common types of interest rates are:
- Fixed Rates: When your rate is locked in at a set amount for a specified period (usually 1-5 years). Fixed rates are great for borrowers seeking stability.
- Variable Rates: These will move up or down in response to market conditions. This means you could end up paying less interest if rates fall but more if they rise.
- Split Rates: This is when a percentage of your loan has a fixed rate, and the remaining portion is variable, offering a good balance between flexibility and stability.
Interest rates are heavily influenced by the Reserve Bank of Australia (RBA), which sets the official cash rate. However, individual lenders may also choose to adjust their rates based on their operating costs, risk assessments and what kind of competition they’re facing from other lenders.
How to Compare Home Loan Interest Rates
How can you accurately compare home loan rates to ensure you’re getting the best possible deal?
Step 1: Research Loan Options
You’ll need to collect information on the various loan products being offered by banks, credit unions and online lenders.
Step 2: Understand Comparison Rates vs. Advertised Rates
Advertised rates are what lenders use to attract new borrowers, but they often won’t include all the associated loan costs. You can get a more accurate picture by considering the comparison rates, which will also include any additional fees and charges. These added costs (such as monthly fees, application fees or discharge costs) can significantly add up over time, so it’s important to include them when comparing loan products.
Step 3: Assess Loan Features
Loans come with a variety of different features, such as offset accounts, redraw facilities or flexible repayment options. These features may incur additional costs, so evaluate what features offer the greatest financial benefits.
Step 4: Use a Loan Comparison Calculator
A loan comparison calculator is an online tool that can help you evaluate a shortlist of loan products side-by-side.
Step 5: Consider Future Rate Changes
If you’re considering a variable interest rate, think about how future rate increases might affect your repayments. Will you still be able to service the loan if interest rates were to substantially increase?
Step 6: Seek Professional Advice
An experienced mortgage broker can quickly and effectively compare loan products from an extensive panel of lenders (they may even have access to exclusive deals). Brokers can give you expert advice tailored to your specific financial situation and will make recommendations based on your compatibility with set lending criteria.
How to Get the Best Home Loan Interest Rates
Securing a competitive rate is crucial for affordable homeownership. To ensure you get the best home loan interest rates to suit your needs, contact a mortgage broker. At Professional Lending Solutions, we can help you look beyond the headline rates to understand the total cost of the loan, saving you a whole lot of time and money.
Contact Professional Lending Solutions today, then sit back, relax and let us do all the hard work for you.

Phil’s journey from banking to mortgage brokering reflects a career driven by a commitment to personalised service and tailored financial solutions. With a distinguished background in banking, including roles at NAB, ANZ and Lloyds TSB Bank in the UK, Phil spent 12 years developing expertise in personal and commercial finance, while also completing a Bachelor of Business (Finance), followed by an MBA majoring in International Business.